- Analytics
- News and Tools
- Market News
- EUR/USD: Accelerated tapering by the Fed to pull the pair toward 1.10 – Scotiabank
EUR/USD: Accelerated tapering by the Fed to pull the pair toward 1.10 – Scotiabank
EUR/USD is little changed ahead of the Federal Reserve. The Fed is widely expected to accelerate the tapering of its bond purchases, which should drag the pair down towards 1.10, economists at Scotiabank report.
Weak inflation outlook set to weigh on the euro
“With inflation set to miss the 2% goal over the latter part of the forecast horizon, it then seems highly unlikely that the ECB will increase rates sooner than late-2023/early-2024 and this would require sustained inflation expectations around 2%.”
“Market pricing that sees 10bps in hikes by end-2022 and another 20bps in rate hikes by end-2023 is too optimistic and we think that near-term rate differentials will continue to act as a major determinant of EUR underperformance over the next two years.”
“Today’s confirmation of accelerated tapering by the Fed, to likely be followed by a hike in Q2, will act to pull the EUR toward 1.10 in the coming months – if not sooner, in tandem with energy and virus worries in the Eurozone.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
